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Conventional Mortgage Guidelines

Index for Conventional Mortgage Guidelines

This section will break down the conventional mortgage underwriting guidelines. 

The topics for Conventional underwriting are:

AUS or Automated Underwriting Systems

Borrower Information

Credit

Income

Ratios

Assets

Property

Occupancy

Insurance

Appraisals

Eligible Transactions

Program Description

DU Refi Plus

 

AUS

Automated Underwriting System (AUS) Most large mortgage lenders use four basic steps to process a loan application.  First, data is gathered by the loan officer and entered into some type of loan application software. I use Calyx Point.  The next step is the loan officer submits the information contained in the loan application to another …

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Borrower Information

Borrowers – Conventional Mortgage Remember, these are the rules I follow for borrowers in Kentucky.  These guidelines are my interpretation of the mortgage mumbo jumbo, not the same as laid out in the Fannie Mae Selling Guide.  I can only lend money to individual applicants/borrowers. An applicant is a person that applies for a loan …

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Credit

Underwriting Credit Conventional Mortgage There are three parts to underwriting credit for a conventional mortgage: Credit Scores Credit Report Trade Lines All three sections are equally important.  If any of the three are lacking in some way the approval of the loan request is in jeopardy.  Even if the AUS shows provides an Approve Eligible …

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